Raw sugar hits 8-1/2 month high; cocoa and coffee also rise
- India has yet to announce its export policy and there are fears financial support might be limited.
- ICE coffee speculators switched to a net short position of 304 contracts in the week ended Nov. 10, cutting 2,906 contracts.
LONDON: Raw sugar prices on ICE touched an 8-1/2-month high on Tuesday, buoyed by signs that the market is growing tighter and moving towards a wide deficit this season, while cocoa and coffee also rose.
SUGAR
March raw sugar firmed by 0.02 cents, or 0.1%, to 15.49 cents per lb by 1230 GMT after peaking at 15.66 cents, its highest since mid-February.
The International Sugar Organization is forecasting a global sugar deficit of 3.5 million tonnes in the 2020/21 season with the production outlook downgraded. It previously forecast a deficit of only 724,000 tonnes.
Dealers said they now expect supply tightness at least until the Brazilian harvest next year, regardless of what the Indian government decides to do about supporting sugar exports this season.
India has yet to announce its export policy and there are fears financial support might be limited.
ICE sugar speculators cut their net long position by 954 contracts to 190,429 in the week ended Nov. 10, CFTC data showed.
March white sugar was up $0.40, or 0.1%, at $421.20 a tonne, having also hit an 8-1/2 month peak.
COFFEE
March arabica coffee rose 0.3 cents, or 0.3%, to $1.1905 per lb after touching its highest since mid-September.
Dealers said prices were being boosted by hurricane Iota, which is devastating central America, a major coffee-growing region.
ICE coffee speculators switched to a net short position of 304 contracts in the week ended Nov. 10, cutting 2,906 contracts, CFTC data showed.
US green coffee stocks fell by 264,937 bags to 6.1 million 60kg bags by the end of October, indicating improved demand.
January robusta coffee fell $8, or 0.6%, to $1,432 a tonne, having hit its highest since early September.
COCOA
March New York cocoa rose $37, or 2.2%, to $1,693 a tonne, underpinned by tightness in ICE warehouse stocks.
New York cocoa speculators trimmed their net short position by 503 contracts to 6,275 in the week ended Nov. 10, CFTC data showed.
March London cocoa was up 62 pounds, or 2.6%, at 2,497 pounds a tonne.
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